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Sunday, May 31, 2009

[ALOCHONA] Govt mulls land-river route hook-up for transit to India



Govt mulls land-river route hook-up for transit to India

Government is considering a proposal to provide India transit through Bangladesh which in part would be through riverways instead of a complete land transit, competent sources said, adding that no firm decision had been taken.

In the event of Bangladesh deciding to grant India road transit, it would seek transit facilities through India for transportation of her cargo to Nepal and Bhutan as a quid pro quo. Bangladesh would also ask for duty free access of its products to Indian market and withdrawal of all sorts of non-tariff barriers on Bangladeshi exports, said the source who preferred not to be named.

Under the proposed plan, Indian vessels would be allowed to call at Ashuganj river port from India and transfer its cargo by road to Agartala of Tripura state.

The second route for transit would be to provide India facilities to transfer cargoes from Chittagong port to Agartala through Bangladesh by road.It is learnt that due to recent Indian elections, talks over providing transit were stalled temporarily but it is expected to resume next month.

If it is decided to allow transit facilities for Indian cargo between Chittagong Port and Agratala, a highway would have to be constructed connecting the two cities. Bangladesh would charge fees for trucks carrying Indian cargo through the highway, the proposal said.

Besides, under the proposed package which has to be approved by both the governments, India would be asked to share the cost of construction of the highway.It is also learnt that a Commerce Ministry-level meeting over the issue might take place by July this year to discuss the modalities.

When asked about the issue, Commerce Minister Faruk Khan told The Independent that providing transit to India should be considered as a mechanism to boost Bangladesh's trade with the regional countries.

No one should treat transit as a political issue, he said, adding politicking with the transit issue in the past had harmed the country economically.

"Different studies on transit also revealed that Bangladesh would immensely benefit if transit facility is introduced in the region," Faruk Khan said and dispelled as baseless and motivated apprehensions that the government is contemplating to provide "corridor" in the name of transit.

There is no question of providing corridor in the name of transit, the Minister said and held out the assurance that transit would be given to India only when the government would be sure that it would be beneficial for our country.

Faruk Khan also pointed out that the Bangladesh government had agreed to provide transit to India in the early 80s under an agreement and under a protocol of that agreement India has been enjoying water transit.

Now another protocol needs to be signed if we want to provide India transit by road", he explained. Asked whether the government was planning to provide the transit combining both the river and land routes, the Commerce Minister said it might be in conceptual stage but government has not taken any decision yet.

In this connection he pointed out that one has to assess whether providing total land transit was possible as the present road infrastructure of the country was not suitable to bear the load of huge number of loaded trucks over it.

In that sense the idea of combining river and land routes to provide transit would be more realistic, he said adding that it was his personal view.Faruk hoped that the ministry-level talks over the trade and transit issue would take place soon.

It may be mentioned that in March this year during the Indo-Bangladesh meeting on water transit, New Delhi asked Dhaka to allow transportation of its cargoes to northeastern state of Tripura through Ashuganj river port.New Delhi offered to help build necessary infrastructure on the Bangladesh side for transporting Indian machinery if Dhaka agrees to its proposal.

During the meeting, which renewed the Inland Water Transit and Trade Protocol, the Indian delegation tried to persuade the Bangladeshi team to include Ashuganj as a new port of call for facilitating transportation of Indian goods from Kolkata to Agartala.

The Inland Water Transit and Trade Protocol was first signed in 1980 under a bilateral trade agreement to ensure mutually beneficial arrangements for the use of the waterways for commerce, and for keeping the river routes navigable. The protocol was first renewed in 1999, then in 2001, in 2007 and again in March this year.

In the first week of this month at a meeting between Indian High Commissioner Pinak Ranjan Chakravarty and Commerce Minister Faruk Khan, India proposed "constructive talks" on the issue of transit facility 'once a new government takes office in New Delhi after the general elections'.

After the meeting Indian High Commissioner said, "Everybody now acknowledges that connectivity is necessary. If Bangladesh offers its roads and Chittagong port for regional use, money will not be a problem for building the required infrastructures".

Referring to study reports, he said Bangladesh could earn between $1.5 billion and $2 billion by providing Chittagong port for regional use.

http://www.theindependent-bd.com/details.php?nid=127924



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